Worldwide shipping has no boundaries

 

STUDENT PAPER

By Zineb Lahreche

SKEMA Business School

Morocco and France

 


 

ABSTRACT

Nowadays inter-connected modern world, International trade became integral part of many Projects. In order to stay competitive, companies need to employ Global Project Manager with strong International transport knowledge and skills. The purpose of this research is to provide guidance and help to future Global Project Manager, so they can choose the best shipping option for the long-crossed distance goods they need to bring. The question arising is the following: “How can a Global Project Managers Determine the Best Shipping Solution”. Helped by multiple comparison tools we have considered all the existing options and kept narrowing our choice until we had enough justifications to choose the best alternative.

Keywords: International, Import, Trade, Maritime transport, Law, Incoterm, Liability, Risks, Contract of carriage by sea.

INTRODUCTION

“7bn”[1], this is the number of people in the world sharing very poorly distributed resources.

“149 400km2 of land and 360 700km2 of ocean, 30% soil, 70% water”[2] this is how the world looks. How can we re-distribute these resources equally? One potential solution: International trade of goods by sea.

As one of the most internationalized industries, Maritime transport plays a big role in the global economy. Industry laws and history have shed light on maritime transportation as “being the most predominant mode of transportation”[3]. Indeed, overland transportation has proven to be “slower, more costly and dangerous”[4].

Moreover, the fact that countries are not self-sufficient (meaning they cannot avoid penuries, high costs and other issues), makes import a need for the economy. Indeed, many domestic markets suffer from a lack of goods and services that might be abundantly available in other markets and at lower prices. Today’s globalization requires project managers to be able to bring goods and services from different countries to a single market. Import facilitates that while also saving time, money and energy.

Now let’s assume a Project Manager running a big Project in a remote African area needs to bring some bulky goods from another continent to achieve its project. For that he will need to undertake an import operation. To do so the Global Project Manager needs to conclude an agreement with the foreign supplier which is the contract.

Carriage’s contracts can come in various shapes and some of them might fit better others for a specific project. In Import and export operation’s legal frame we find sales contracts and transport contracts. The sales contract goal of negotiations is to reach an agreement which materializes the agreement determining the rights and obligations of the parties. This agreement facilitates the management of disputes related to the wrong interpretation of different legal systems and languages.

The sales contract must therefore be carefully prepared: it is concluded between 2 (natural or legal) persons located in different countries – the buyer and the seller – and come to finalize the negotiation.

There are infinite declinations of contract but all of them must include the selected MODE OF TRANSPORT as well as the applicable INCOTERM rule chosen.

More…

To read entire paper, click here

 

Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director paul.gardiner@skema.edu.

How to cite this paper: Lahreche, Z. (2019). Worldwide shipping has no boundaries, PM World Journal, Vol. VIII, Issue V, June.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/06/pmwj82-Jun2019-Lahreche-worldwide-shipping-has-no-boundaries.pdf

 


 

About the Author


Zineb Lahreche

Paris, France

 

           

 Zineb Lahreche is a Master’s degree student in Project and Program Management and Business Development at SKEMA Business School in France. Born and raised in Morocco she experienced the international adventure at an early age. After she got her Baccalaureate at 18 she made the decision to move to France to keep on her university studies. From that moment she has chosen to seize new opportunities worldwide and has studied in South Korea and the United States as well.

She is currently completing her last year of studies and will be graduating in December of 2019. This year, she is furthering her education via of a distance learning mentoring course, under the tutorage of Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Guild of Project Controls certification.

Zineb lives today in Paris, France and can be contacted at zineb.lahreche@skema.edu

 

[1] World Population Clock: 7.7 Billion People (2018) – Worldometers. (2018). Retrieved from http://www.worldometers.info/world-population/

[2] Elert, G. (n.d.). Area of Earth’s Land Surface – The Physics Factbook. Retrieved from https://hypertextbook.com/facts/2001/DanielChen.shtml

[3] Transportation Modes, Modal Competition and Modal Shift. (2018, August 10). Retrieved from https://transportgeography.org/?page_id=1731

[4] Methods of international transport. (2016, 13). Retrieved from http://www.exportiamo.it/aree-tematiche/12950/methods-of-international-transport/